John Nick
Contributor
Cheers RickBit of a saga JN. Shell were always the main supplier of Bitumen in NZ, either from manufacturing and storage at Marsden or direct importing. The fact they were a major, say controlling, shareholder in the Refining Company says it all regarding that monopoly.
Z took over the mantle when Shell sold out and they are now the principal importer and supplier. Read somewhere a while ago that the big Civil companies like Higgins and Fulton imported their own but was only as a backstop measure. Also, I think it was last year NZTA announced they were looking into being the major supplier of Bitumen but as far as I know nothing happened there.
Haven't heard anything about supply issues related to the Marsden closure but like any petroleum based product, the price fluctuates all over the place and that would have an effect on a roading contractor, especially on a fixed price. Have to be some hedging or a decent escalation clause. Covid and associated transport costs would have certainly driven the price up.
So to finally answer your question. Like the refined importation of fuels, I don't think there's much difference in overall cost (cost of refining production is cheaper over seas) for Bitumen with the refinery gone. As far as I know, the bitumen storage tanks are still up there and in use so supply can be maintained. The question then becomes one of quality of product and if the roads we have now are anything to go by, the product is crap.
Haven't looked to see if the Govt gets any excise or tax (other than GST) on Bitumen. It's a petroleum product so ????